CALGARY, Alberta, July 30 Keyera Corp
and Kinder Morgan Energy Partners LP announced on
Tuesday a $98 million joint venture to build a crude oil
rail-loading terminal in Edmonton, Alberta, one of the main
storage hubs for Canada's oil sands.
The project is the latest development to cater to the
growing demand among Canadian producers, frustrated by
apportionment on congested pipelines, to use railways to export
crude south to U.S. markets.
Midstream operator Keyera said the 50-50 joint venture
rail-loading facility will be able to load about 40,000 barrels
per day of crude oil and deliver to refineries anywhere in North
Keyera's share of the cost of the Alberta crude terminal is
expected to be about $65 million, while pipeline company Kinder
Morgan is expected to spend $33 million.
"Kinder Morgan's access to multiple crude streams, together
with our location and facility capabilities, combines crude oil
supply with the necessary infrastructure, land and rail
connectivity to help address some of the crude oil delivery
constraints currently being experienced by the Alberta energy
sector," Keyera President and Chief Operating Officer David
The construction of the terminal is underpinned by a
five-year agreement with a major refiner, the company added.